Smart Energy

The Smart Grid project aims to build up a smart electrical network in which electricity production; distribution and consumption are controlled and managed by information technology. It allows two-way communication to respond digitally on changing electricity demand. Smart Grid is able to connect and support electricity produced from other alternative sources and maximizes efficiency of asset management system. Smart Grid project will provide services to customers via a smart metering network, which again assures that electricity is secure, stable and reliable.

Alternative energy production project aimed to produce alternative energy which is clean and harmless to the environment e.g. solar roof, electricity from waste.

Stumpf Amata brings next-generation power solutions to light

AMATA and Stumpf Energy have recently entered into a joint venture to bring clean, reliable solar generated power to industrial power consumers on AMATA’s estates. The JV, now named Stumpf AMATA Solar Company will initially focus on commercial & industrial roof top projects. Stumpf AMATA will operate through the entire value chain of projects by developing, financing, constructing and operating the solar PV facilities. Power generated from the PV system will be fed directly into the electrical system of the site and power consumers will pay a service fee to Stumpf AMATA. The service fee will result in significant savings to the power consumer because the power will be priced lower than current day time peak pricing. Because all capital and operational expenses are paid for by the JV, power consumers benefit from immediate savings.

This new financial product offering provides a zero investment opportunity for power consumers to benefit from ‘‘energy as a service” which creates immediate and tangible savings on power consumer electricity bills. The Stumpf AMATA business model makes solar PV power solutions more accessible to our partners and customers through a renewable energy, zero investment alternatives to utility power generation.

Create immediate, Day One Savings on power bills;

Provide clean and reliable power;

Operate under a fixed cost;

Include attractive early buy-out option;

Provide a predictable power supply and costs for the term of the agreement;

Eliminate PV power plant operational risk to the customer.

Electricity is generated from photovoltaic (PV) panels when photons of sunlight “excite” electrons in silicon cells. The result is electricity! In Stumpf AMATA’s business model, solar panels are placed on the roof of a customer. An ideal site will have no shade on the panels, especially during the prime sunlight hours of 9 a.m. to 3 p.m.; a south-facing installation will usually provide the optimum potential for your system, but other orientations may provide sufficient production. The electricity produced is DC (direct current) and must then be converted to AC (alternating current) suitable for use in the building. The inverter turns the DC electricity generated by the solar panels into AC power that can be put to immediate use by connecting directly to a dedicated circuit breaker in the electrical panel.

In order to finance the projects the JV is securing a credit facility from Asia Development Bank and Siam Commercial Bank for the investment CAPEX of projects. By securing the credit facility in advance of project development the JV is able to move quickly to construction and operation once an appropriate project is identified and after a revenue agreement is executed. This allows the JV to adapt a nimble approach to project development and remain extremely competitive in the Thai renewables market. Furthermore, Stumpf AMATA has secured preliminary approval from Lenders for a portfolio approach; with a pre-identified EPC, preliminary credit approval and all project documents already in place. This further enables the JV to shorten development time and enabling power consumers to benefit from lower power costs quickly.

Why solar PV? There are many important reasons to consider a service contract for solar PV power with Stumpf AMATA. The primary reason is cost. The government of Thailand has recently decreased the Ft rate, pushing the overall cost of power to consumers higher. This variable rate is often used by the utility to ensure stable and low costs of power. It functions as a subsidy to power prices. However, the government cannot provide this subsidy indefinitely and will eventually be forced to allow the true cost of power to drive power pricing.

The Kingdom of Thailand also relies heavily on natural gas, which fuels two-thirds of its electricity generation. As part of the government fuel-diversification strategy, the government has proposed to reduce natural-gas- powered generation by increasing its dependence on renewable energy, particularly solar. The licenses to extract natural gas from fields off shore are also currently under review and being transferred to new companies. This transfer will likely take 1-3 year as operations need to be re-tooled and handed over. This could cause a disruption in supplies which can negatively affect power prices.

Despite liquid fuel (main source of power generation in Thailand) prices dropping all around the world to an all time low, Thai electricity prices have remained steady. Why? The THB and the Thai economy have stabilized but are “soft”. Buying international oil and power costs more due to the unfavorable FOREX. This price increase is then passed on to power consumers. While the THB was strong, Thailand got an advantage buying international natural gas for electricity. But now that the baht is weak, Thailand takes on the burden of paying extra for that natural gas.

EGAT has seen an increase of up to 4% in electricity demand last year and is on track for similar increase this year. Tight supply and increased demand also increases the cost of power. In addition there is currently no appetite for financing the government’s wished increase of 7.5 GW in coal/lignite power plants further constraining energy supply. In fact many existing power plants need retrofitting or will be decommissioned. An estimated 25 GW out of the operational capacity of 37 GW needs to be decommissioned.

Stumpf AMATA is your best partner for alternative solutions to utility power. The partnership brings together expertise from financing, development and solar PV engineering to provide our partners with the best in class equipment, construction and operations at the best price possible. Together Stumpf AMATA shifts the power paradigm to favor our Customers.

Are you interested? Please contact Stumpf Amata Company Chief Operating Officer Nick Rose at n.rose@stumpfenergy.com to discuss power solutions that might be appropriate for your company.